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The Culture of Entrepreneurship


  • Chakraborty, Shankha
  • Thompson, Jon
  • Yehoue, Etienne


We study the cultural process through which a society inculcates an entrepreneurial spirit. People work for a guaranteed wage or operate a firm whose return depends on business expertise. The latter is culturally acquired, within the family or outside, and people may choose an occupation different from the one they were socialized into. We show that a cultural bias towards safer occupations from colonial and post-colonial policies leads to stagnation where entrepreneurs do not upgrade technology because of their proficiency with existing methods. An aggregate productivity shock can tip this economy towards growth where cultural inertia gives way to technological progress led by established businesses. A human capital shock where existing business expertise is less useful, in contrast, causes growth through the emergence of a new class of entrepreneurs. In either case culture ceases to be destiny. We relate the theory to historical and recent episodes.

Suggested Citation

  • Chakraborty, Shankha & Thompson, Jon & Yehoue, Etienne, 2014. "The Culture of Entrepreneurship," MPRA Paper 56892, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:56892

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    References listed on IDEAS

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    Cited by:

    1. Gonzalo Olcina & Elena Mas Tur & Luisa Escriche, 2017. "Entrepreneurs, culture and productivity," Discussion Papers in Economic Behaviour 0117, University of Valencia, ERI-CES.

    More about this item


    entrepreneurship; culture; human capital; colonization; growth;

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • F54 - International Economics - - International Relations, National Security, and International Political Economy - - - Colonialism; Imperialism; Postcolonialism
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • Z10 - Other Special Topics - - Cultural Economics - - - General

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